Many functions in EAC PV Tools have a mortality table parameter. This parameter is entered as a text string, which is the table name, plus several options that allow the user to define additional attributes such as set back/forward, projected (static or generational), weighted, combined, blended.
Mortality parameter definition
The most basic way to define a mortality table is to simply provide the table name, for example if you want to use the 1983 Group Annuity Mortality (male) then you enter "GAM83M". The add-in’s library contains many tables from a variety of sources.
Here is a list of the available attributes of the mortality table with examples:
Attribute |
Format |
Example |
Resulting
Table |
Comments |
None |
|
GAM83M |
1983 Group Annuity Mortality (male) |
Table name must be provided as a test
string |
tablename/SByears |
GAM83M/SB3 |
1983 Group Annuity Mortality (male),
set back 3 years |
negative years is a set forward |
|
tablename/SFyears |
GAM83M/SF3 |
1983 Group Annuity Mortality (male),
set forward 3 years |
|
|
Apply a factor to the table (multiply every 𝑞𝑥 in the table by the factor) |
tablename[factor] |
GAM83M[.9] |
1983 Group Annuity Mortality (male)
where 𝑞𝑥 at every age is multiplied by .9 |
|
Blend two tables using a weighting factor for each
table – e.g., create a unisex table |
tablename1^tablename2 |
GAM83M[.6]^GAM83F[.4] |
Blended table: 1983 Group Annuity Mortality
(male) (table factor = 0.6) and 1983 Group Annuity Mortality (female) (table
factor = 0.4) |
This is the easy way to define a unisex
table. |
Combine
employee/retiree tables where
an “employee” table applies up to a given age, and a “retiree” table applies
thereafter |
tablename-Cage where age
is the age at |
RP2014-E-F-c65 |
RP 2014 Total Dataset Employee (female)
(age 18 to 80), combined using employee rates before age 65 and retiree rates
thereafter |
This
only works for tables that have an “employee” table and an associated
“annuitant’ table, such as RP-2000, RP-2006, RP-2014, RPH-2006, RPH-2014. |
Pre-retirement
and post-retirement tables
where one table applies during the deferral period, and another table applies
during the payment period |
tablename |
RP2014-F |
RP 2014 Total Dataset Employee
(pre-ret), Healthy Annuitant (post-ret) (female) |
|
tablename1,tablename2 |
RP2014-E-F,RP2014-HA-F |
RP 2014 Total Dataset Employee
(pre-ret), Healthy Annuitant (post-ret) (female) |
||
No pre-retirement mortality |
zero,tablename |
zero,RP2014-HA-F |
Pre-retirement: No mortality;
Post-retirement: RP 2014 Total Dataset Healthy Annuitant (female) (age 50 to
120) |
This is simply the combination of two
tables, with “zero” being just special table name |
Static projection to a given year using a 1-D mortality
improvement scale |
tablename/scalename@year |
GAM83M/AAM@2018 |
1983 Group Annuity Mortality (male),
projected to 2018 with scale Scale AA (male) |
In this example “AA” is the same as
“AAM” because “M” is assumed given the male mortality table |
Generational
projection using a 2-D mortality
improvement scale based on age and year |
tablename/scalename |
GAM83M/AAM@2018/gen |
1983 Group Annuity Mortality (male), at
valuation year 2018 with generational improvement using Scale AA (male) |
If “@year” is not provided, the
valuation year is assumed to be the base year of the mortality table |
Generational projection stopping at a given year using
a 2-D mortality improvement scale based on age and year |
tablename/scalename |
RP2014-F/MP2020 |
RP 2014 Total Dataset Employee
(pre-ret), Healthy Annuitant (post-ret) (female), at valuation year 2022 with
generational improvement using Full 2D Mortality Improvement Rates Scale
MP-2020 (female) (stop at year 2030) |
|
Apply a factor to the projection scale (multiply
every factor𝑥 in the table by the factor) |
tablename/scalename |
gam83m/AAM@2018{.5} |
1983 Group Annuity Mortality (male),
projected to 2018 with scale Scale AA (male) (projection scale factor = 0.5) |
|
To assist the user in setting the various options for a mortality table definition, there is a Mortality Table Wizard. Clicking on the button in the Excel’s main menu pastes the wizard in the active worksheet. From there, all of the settings are available, and the resulting table name is produced along with a long description of the table.
You can view the entire library of mortality tables by clicking on the 𝑞𝑥 button in Excel’s ribbon menu.
Mortality improvement scale library
You can view the entire library of mortality improvement projection scales by clicking on the 𝑠𝑐𝑥 button in Excel’s ribbon menu.
Related Topics
How To …
How to define an interest rate parameter
How to define a COLA parameter
How to set up a custom mortality table
How to set up a custom 1-D mortality improvement scale
How to set up a custom 2-D mortality improvement scale
How to set up a unisex mortality table
How to set up a lifetime income illustration
Upgrade from the old version of EAC Utilities